Mnuchin, U.S. Treasury Secretary, Says TikTok Will Be Shut Down If It Does Not Become a U.S. Company

▲Steven Mnuchin, U.S. Secretary of the Treasury
[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Trump administration in the U.S. has reiterated its principles regarding the Chinese video-sharing social networking service (SNS) TikTok.

Steven Mnuchin, U.S. Treasury Secretary, stated in an interview with CNBC on the 30th (local time), "TikTok must become a U.S. company controlled by American investors."

Mnuchin also praised the plan for TikTok's parent company ByteDance and U.S. Oracle to establish 'TikTok Global' as a "great outcome," adding, "If the agreement meets our conditions, we will approve it."

However, he maintained the position that TikTok Global must be shut down again if it fails to meet the conditions set by the U.S. government.

He indicated that if American investors do not hold a majority stake in TikTok Global, the contract between ByteDance and Oracle will not be approved.

Earlier, ByteDance and Oracle agreed to establish TikTok Global, headquartered in Texas, U.S.

Immediately after the contract was finalized, the stake of American investors, including shares held by U.S. investment firms invested in ByteDance, reached 52%, and it is known that the stake will increase further if the company goes public on the U.S. stock market.

However, since ByteDance expressed the position that it would maintain control even after the establishment of TikTok Global, there has been speculation that the conditions set by the Trump administration might not be met.

In the interview, Secretary Mnuchin said, "Any agreement must meet conditions to protect U.S. security."